ULIP policy Comparison(LIC and ICICI prudential)

Posted by Admin on 24

After discussing ULIP charges let us look at two ULIP policies.

First from market leader LIC(Profit Plus) and other from ICICI Prudential (Premier Life Gold).

I have chosen these two policies as both of them provides relatively same features like Limited premium payment term, Partial Withdrawal.


Profit Plus(LIC)

Premier Life Gold(ICICI)


Single,3,4,5 year

3 or 5 year

Minimum premium

20,000 for single mode

10,000 for others

1,00,000 for 3 year

60,000 for 5 year

Min. Entry age

0 years

0 year

Max. Entry Age

65 years.

69 year for term 3 year

65 year for term 5 year

Minimum Policy Term

5 years

6 year for PPT 3 year

10 year for PPT 5 year

Maximum Policy Term

20 years

30 years

Partial withdrawal

Allowed after 3 years

Allowed after 3 years

On death

Higher of Sum Assured or the Policyholder’s Fund Value

Sum Assured or fund value whichever is higher

Allocation Charge:

Profit plus

Under single premium mode it is only from 4.5 to 5 %.

For PPT of 3 to 4 year in the first year it is between 9 to 10.5 % and 2.5% in the subsequent years.

For PPT of 5 year it is quite high. It charges between 22.5 to 24 % in the first and 4% in the subsequent years.

The allocation charge depends on amount invested, higher for less investment amount.

Premier Life Gold (ICICI)

For 3 years PPT it charges 12 % in the first year and 4% in the subsequent years

For 5 years PPT it charges 12% in first year,4% in 2nd and 3rd year and 2% for remaining years.

Mortality charges:

Profit plus

For 25 year healthy male it comes to 1.42 Rs. Per 1000 S.A

Which comes to Rs. 142 per 1 Lac?

Premier Life Gold (ICICI)

Here they charge separately for male and female

For 20 years male it is Rs. 1.33 per 1000 Rs. S.A

For 20 years female it is Rs. 1.26 per 1000 Rs. S.A

Fund management charge

Both charges same fund management charges

It is in the range of 0.75 % to 1.50 % Per annum and calculated on daily basis.

Policy administration charge:

LIC charge Rs. 60 per month in the first year and Rs. 20 for the subsequent years.

ICICI charge Rs 60 per month.

Switching charges:

Both charges in the same way,

4 switches are free. Rs 100 for additional switches.

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shan said...

what abut surrender charges, if a person fails to pay premium after 2 years is he gets any thing

Rahul said...


I am still confused and not able to determine which one is best, as I am new to ULIP.

Bhargav said...

In primier life gold you will get 40% of your fund value while in LIC you will get full fund value in case you stop premium after 2 years.
but in both cases surrender can only be done after 3 years.

If you are new to ulips i would suggest you to first read the ulip section of my blog and then after understanding it choose the right plan

spandan said...

Thanks Bhargav.

Anonymous said...

I've a question regarding ICICI Prudential Pru Life Insurance Policies. My father took a Policy in 2007 in which he had to pay a sum of Rs. 25,000 P.a for a min required period of 3 years. He paid the first premium of Rs. 25,000 in 2007, but he died in 2008. So it was not possible to pay the remaining premiums. Few months after he died my mother(the Nominee) received a cheque from ICICI Prudential for a sum of Rs 12,200+ . What I don't understand is , is that the sum the Nominee gets in case of the death of the insured person.? Is there something called a "Sum Assured" in this case. If so so what would be the anount. Do you think the ICICI Prudential Pru is cheating on my mother?

I would appreciate it if you could give me your thoughts on the matter.

Bhargav said...

Death benefit (Sum Assured) varies between policy to policy.
In your case (as you have not given policy name and said that prm required to be paid four 3 yrs.) I assume that it is ULIP policy withought life cover.
ULIP policies without life cover only gives you fund value on death.
Initial charges were nearly 30% of premium so actual investement would be Rs. 17500.As market crashed in 2008 your amt might have reduced to 12000+.
Please check what are the terms and condition of your policy if you have retained the maturity recpt with u or comment here with name of the policy.

Anonymous said...

Hallo Bhargav,

Thank you very much for your reply.
The name of the policy was "ICICI Prudential Lifetime Super Pension" and its written on the premium paid receipt that the "Sum proposed death benefit(Sum assured) is Rs 1 lakh".

Should we send a claim to the ICICI Prudential with the copies of all the relevant documents attached. And what shall we do with the cheque that they sent us.

Thanks again

Bhargav said...

In the product broucher
it is clearly written that
"HIGHER OF SUM ASSURED OR FUND VALUE IS PAID" on death if sum assured of 1 Lac is opted.

However seems like they have only paid fund value.
Please first ask for the explanation from them and then submit claim.

Mean while deposit u r chaque as they can simply deduct chaque amt while paying u claim amt.

Anonymous said...

Thank you Bhargav, I'll let you know the results.

Teg said...


I have ulip from icici, 3 yrs r over r there any withdrawal charges in it?

Bhargav said...

pls let me know plan name.

Anonymous said...

Dear Bhargav,

I had invested in ICICI Prudential Life time super pension.Growth (Maximiser) ULIP Scheme. I had started in Aug2006 with monthly investment of 10,000/- for 3 years. I still have 5 more ECS payment to complete the 3 years period. Currently,(Ref-Jan2009 where in I completed 3,00,000/- investment),my book value with reference to NAV value is appoximately 2,00,000/- with a loss of 1,00,000/-.

I am thinking to surrender the ULIP at the end of my 36months complettion by July2009.I learned from brochure i will given 98% of the unit/nav.

I need your advice whether to surrender it or not?i am planning to invest it house/land property. Kindly post your suggestion. i can be reached at ali.jahaya@gmail.com.


juicy said...

Hi bargav,

I am shocked with the above reviews.

I have taken life time super for 10 years and i am paying 3000 per month .I am paying this amount for nearly 2 years. the agent said after three year i can take the return value and i can continue with 3000.

when i took the policy i dont know any thing about the any policy . for tax saving purpose i took the policy and not for any extra money.

could you tell me will i get atleat my paid amount after 3 years.I am afraid it my 2 years blood.

Bhargav said...

It is unlikely that you will get your invested amount back after 3 years as out of Rs. 100 invested in ulips on an average only 80-85% gets invested in the initial years because of high allocation charges.
with market in the negatives your investment might be at least 50% down this makes your Rs. 80 to Rs. 40.

please understand that ulip are for long term and not for 3 years and agent always says 3 yrs time to attract the investor.


Indian stock market is one of the most volatile market. Its two main stock exchanges are NSEand BSE. Both exchanges generally follow same trend.

NSE and BSE offers platform for investment in Indian stock market. In India there are many traders who prefer NSE over BSE as they consider BSE
as more volatile exchange but truth is that all exchanges be it NSE, BSE or LSE are volatile and should not be considered as a place for speculation.
One should strictly follow technical analyses if they want to earn regularly from any stock market.

Please remember analyses of stock market be it technical or fundamental do help!!


Pooja said...

Hey I am intersted in LIC's Money Plus-1..and also thought for LIC's profit Plus as well but don't find its NAV(Profit Plus)so lucrative...
Can you suggest me for which plan I should go and if possible please provide me comparison with other private company also...

Bhargav said...

Hi Pooja,

You are right most of the ULIP plans of LIC give less return compared to private players as they are more conservative in term of investment portfolio.

You can select similar product from ICICI pru, HDFC, Kotak. for instance premier life gold of ICICI is a nice policy.

Please select the policy with good track record

Pooja said...

Thanks for your appropriate suggestion..Can you tell me any site which provide NAV history from the day when plan launched for ICICI Premier Life Gold...This is to know the track record.

Bhargav said...


Here is the link for ICICI pru ULIP NAV's


Please also visit


For NAV link of other insurers.

Anonymous said...

Can you provide ULIP Policy comparison for BSLI Dream Plan and ICICI prudential.

jass said...

i have purchase life time gold in 2008 from icici.premium of 150000 Rs .i had paid my first year premium .after second due to loss of job not able to pay my futher premium. did i get my money back .

Gaurav said...

Hi Bhargav,

Whats your take on ICICI Pru ACE?
How do you think it compares to other plans available currently from other insurers?

Bhargav said...

Hi Gaurav,

ICICI Pru Ace is a nice product..
Because of no allocation charge it looks very attractive compare to other ULIP plans.

Please visit the link (http://lifeinsureinfo.blogspot.com/2010/02/icici-pru-ace-super-ulip.html) where I have posted review for this.

Also Would suggest you to read about the various charges of ULIP (http://lifeinsureinfo.blogspot.com/2008/09/ulip-charges.html).


kumar said...

Hi Bhargav,
I already have an LIC profit plus Plan & PAYING RS 20000/- ANNUALLY.But I am not aware how to check whether my LIC profit plus share is increasing or decreasing . When i can except a good return , how can we track it .

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